It is this rational self-interest that can lead to economic prosperity. As Adam Smith, the 18th century philosopher and father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Both parties to a voluntary exchange transaction have their own interest in the outcome, but neither can obtain what he or she wants without addressing what the other wants. The essential feature of capitalism is the motive to make a profit. 2įree markets may not be perfect but they are probably the best way to organize an economyĬapitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. Socialism, by its very definition would prevent that from happening.Finance & Development, June 2015, Vol. Owning property, starting businesses, growing businesses, rising in the workforce are all ways to create wealth, provide for family, generate a sense of self-worth and enjoy life. Economic developers try to help their communities create and maintain a diverse economy where citizens thrive with opportunities to provide for their families and create wealth which in turn helps to create a robust quality of life. This includes “labour market contribution,” income tax, municipal income tax, church tax and other taxes.Įconomic Development has a mission to help create high-wage jobs, encourage friendly business climates, facilitate workforce development, help to retain and attract business and talent, help foster safe neighborhoods and quality of life. The income tax rate varies between 38 and 50+%. It’s been reported Denmark has lowered its car tax to 100%. Government spending has amounted to 51.7 percent of the country’s output (GDP) over the past three years. The overall tax burden equals 46.0 percent of total domestic income. However, there is a large welfare-state component. Indeed this does not sound like Socialism. There is little regulation on private enterprise and it is not difficult to fire people. Property rights and intellectual property rights are respected and enforced. The economy depends heavily on foreign trade, and the private sector includes many small and medium-size businesses. The 2020 Economic Index reports Denmark ranks the 8th freest economy in the world. heterogeneous population of approximately 331 million. Denmark has clearly stated they are not Socialist but let’s look at couple of things.ĭenmark has a homogeneous population of approximately 5.8 million people as opposed to the U.S. The article goes on to say millennials like the idea of Scandinavia Denmark for example as providing a lot of social programs. The title of the article is “Millennials like socialism - until they get jobs.” The article also states millennials are less in favor of Socialism if it means paying more taxes. You can’t have a free market and state controlled production and property.Ī Washington Post article in 2016 states polls showed millennials in favor of Socialism but not in favor of government control of the economy. This seems to show that Americans don’t understand what Socialism really is. Yet, in April of the same year, Gallup released the following response to whether Americans preferred the free market or government to control the following: Innovation, striving for excellence, competitive costs, rising quality and service come from free markets. No private property and the means of production are owned and controlled by the state. 3: a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done.2b: a system or condition of society in which the means of production are owned and controlled by the state.2a: a system of society or group living in which there is no private property.1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.What is Socialism? The Merriam Dictionary defines it as the following: In May of 2019, Gallup released poll results showing 43% of Americans think Socialism would be a good thing. There has been a lot of talk in the news about Socialism.
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